Seagate Technology (STX), first discussed here on July 8, 2009, at a price of $9.50, has seen its stock price erode from about $16.50 to $13.50 during the winter. If you haven't already, now would be a good time to consider taking some profits with Seagate, if you're in near $9.50.

However, those investors who can tolerate the risk can maintain their full position, and go for a bigger gain, but there are risks with STX.

One risk concerns the status of hard disk drive technology. The view from here argues there's at least one more upgrade cycle for desktop PCs -- to Seagate's benefit -- before society shifts to "the computer anywhere/everywhere" era.

Seagate Technology (STX), first discussed here on July 8, 2009, at a price of $9.50, has inched higher in the past four months, rising to about $13.30 from $11.

Further, it you're in near $9.50, that's a roughly 40% gain -- large enough to consider taking some profits with STX.

However, those investors who can tolerate the risk can maintain their full position, and go for a bigger gain, but there are risks.

After the closing bell sounded Wednesday, Seagate Technology (STX) reported its second-quarter results. The tech firm announced that it logged non-GAAP earnings of 33 cents per share ($159 million). The firm's earnings of 33 cents per share matched the consensus estimate, as did the firm's quarterly revenue of $2.72 billion.

STX also reported its performance during the six-month period that ended on Dec. 31, 2010. During this time, the firm's GAAP basis revenue was $5.4 billion, gross margin was 19.9%, net income totaled $299 million, and diluted earnings hit 61 cents per share.

Segate Technology (STX - option chain) stock is trading lower today after the company announced this morning it has cut off talks with private-equity firms about taking the company private, saying the potential suitors did not value the company highly enough. STX also announced it has added $2 billion to its stock buyback plan. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on STX.

This morning, STX opened at $13.26. So far today the stock has hit a high of $13.50 and a low of $13.15. As of 12:05, STX is trading at $13.47, down $0.39 (-2.8%). The chart for STX looks bearish and S&P gives STX a negative 2 STARS (out of 5) sell ranking.

Talk about close calls. Seagate Technology (STX), first discussed here on July 8, 2009, at a price of $9.50, came within about 80 cents of the $9 sell/stop loss this summer, during a bear-hug pattern plunge from $21.70.

Hopefully, you were able to withstand the swoon and retained the shares, as I still like STX. Here's why.

Seagate's 2010 revenue will likely jump 10% to 15% in fiscal 2010 and another 10% in 2011, propelled higher by adequate PC sales growth and the continued transition to digital content.

I first discussed Seagate (STX) here on July 8, 2009, at a price of $9.50, and despite a recent plunge, the shares of hard disk drive manufacturer remain in the catbird seat. Here's why.

Look for Seagate's revenue to increase 20% to 25% in fiscal 2010 and another 10% to 15% in fiscal 2011, propelled higher by strong PC sales and the continued transition to digital content.

Seagate Technology (STX) and Western Digital (WDC) have been battling it out in the hard drive sector for decades. While larger conglomerates have sold or dumped their hard drive operations, these two companies control the vast majority of shipped digital storage devices globally. Unfortunately for them, the struggles of the PC industry last year may mean a tough road ahead as PC makers strike back to try and reclaim margins that are still quite thin, even as the U.S. economy rebounds.

• Intel Corporation (NASDAQ: INTC): Chipmaker Intel Corp. traded up to a new 52 week high today of $20.65. It set its 52 week low of $12.05 back on 2/23/09. The stock is trading higher today ahead of the company's third quarter earnings numbers, which are due out tomorrow following the market close. Analysts are expecting the company to show earnings of 27 cents per share. The company reported a loss of 7 cents per share for its second quarter. The stock closed the day up 1.1% at $20.40, up $0.23 on the day.

MAJOR PAPERS:

• A newly published report by Standard & Poor's said that the performance of organizations such as Federal National Mortgage Association (NYSE: FNM), or Fannie Mae, and Federal Home Loan Mortgage Corporation (NYSE: FRE), or Freddie Mac, could directly affect the U.S. economy and the country's credit rating, especially if they have to be rescued by the government, according to the Wall Street Journal's "Credit Markets" column.
• Seagate Technology LLC (NYSE: STX), a hard drive maker, filed a patent infringement suit in San Francisco against STEC Inc (NASDAQ: STEC) over four patents related to technology used to store data on computer chips, the Wall Street Journal reported.
• The Financial Times reported that Citigroup Incorporated (NYSE: C) is allowing private equity groups such as Apollo, The Blackstone Group LP (NYSE: BX) and TPG that are bidding for up to $12B of its leveraged loans to 'cherry-pick' from a wide range of assets with different credit ratings and prices.

• According to analysts, Reuters reported that technology industry leaders that include International Business Machines Corporation (NYSE: IBM), Oracle Corporation (NASDAQ: ORCL), Cisco Systems Inc (NASDAQ: CSCO) and Hewlett-Packard Company (NYSE: HPQ) are among the companies with large cash reserves that could be used to fund acquisitions.